Top Ten (10) Cryptocurrencies in 2023

Cryptocurrencies are sweeping the globe. The crypto market has experienced both staggering heights and scary depths since Bitcoin's debut in 2009. In this article, we will discuss the top ten cryptocurrencies by market capitalization, as well as the security risks associated with them.

Author: Saman Ali   -   Last updated: 14/11/2023
Top Ten (10) Cryptocurrencies

Summary

Cryptocurrencies are a form of digital currency that relies on encryption technology. They make it possible to make safe transactions online without any third-party intermediaries. Investing in crypto is like riding a roller coaster – you might end up with a wallet full of gold or a piggy bank full of regrets. Investing in crypto assets can be quite risky, but it can also turn out to be a good investment if you approach it the right way and include it as part of a diversified portfolio.

Bitcoin, Ethereum, Tether, XRP, BNB, USDC, Doge, ADA, Sol and Tron make the list of top cryptocurrencies. While it’s simple to put money into crypto, keeping it safe needs extra precautions. Loss of capital, government regulations, fraud, and cyberattacks are just some of the hazards investors in cryptos face.

Accordingly, taking security measures such as 2-factor authentication, a cold wallet, and never sharing your private keys with anyone is pertinent.

What are Cryptocurrencies?

Cryptocurrency is a virtual currency that relies on a decentralised technology known as blockchain. To record financial transactions, blockchain uses a distributed ledger that is kept on multiple computers. The blockchain is, therefore, extremely difficult to hack or tamper with.

The purpose of digital currency is to provide a secure and decentralised way to make payments. They can also be used to store value and to speculate on their future price.

Certain cryptos are utilised as investment vehicles, such as Bitcoin. For many buyers, they are a store of value. Some, like ETH, are more transactional. With more transactional blockchains, developers can create a wide range of transactional tools, services, and communities.

Each of the top cryptocurrencies has its own unique set of benefits and applications. Let’s explore some common types of cryptos here.

Coins

Coins include Bitcoin and other altcoins that use their own blockchain, such as Ethereum. Coins like Bitcoin are usually what first come to mind when you mention crypto.

Tokens

Tokens are blockchain-based digital assets.  It’s possible to use them to signify ownership of an object, gain access to a service, or use a program. Examples are Gemini USD and KuCoin Token. There are many different kinds of crypto tokens, including:

Value Tokens: These tokens stand in for something of worth, such as a piece of digital art or a piece of music.

Utility Tokens: In the list of cryptocurrencies, these utility tokens help provide a service. They grant users the authority to take specific activities within a decentralised application or blockchain network. Binance coin is an example of a utility token.

Security Tokens: The tokens such as Polymath and Harbor are security tokens that demonstrate asset ownership. These tokens allow businesses to issue and sell equity tokens to investors.

ERC-20 Tokens: These are tokens that run on the Ethereum network. They are fungible, which means that they can be exchanged for each other. Chimpzee is an example of an ERC-20 token.

Stablecoins

Stablecoins are cryptocoins with a value pegged to another asset’s price. They are designed to be less volatile than other digital currencies. Tether is an example of a stablecoin.

Collateralised Stablecoins: These stablecoins maintain a pool of collateral to support the coin’s value.

Algorithmic Stablecoins: These stablecoins keep their prices stable by limiting their supply with algorithms.

Altcoins

Altcoins are cryptocurrencies that are not Bitcoin. They can have different purposes beyond just serving as a digital currency. Ethereum, Solana and Ripple are some examples of altcoins.

Meme coins

Meme coins are cryptos that gain popularity and traction through memes and social media. They can be very volatile and should be considered high-risk investments. Dogecoin, Shiba Inu, and Wall Street meme coins are such an example.

Top Ten (10) Cryptocurrencies

Here is the list of top ten cryptocurrencies in the market.

Bitcoin (BTC)

The original and best-known crypto is called Bitcoin (BTC). Founded in 2009, Bitcoin has a market capitalization exceeding $325 billion. Since it is meant to be a decentralised money, neither the government nor financial institutions can control it. It records transactions by utilising a blockchain.

Ethereum (ETH)

Ethereum (ETH) is a decentralised network that facilitates the execution of smart contracts. To put it simply, smart contracts are blockchain-based legal agreements that can carry out their own terms. Ethereum was launched on July 30, 2015. The coin currently has a market cap of $203.48 billion. Even though it is one of the top cryptocurrencies, it is much more than just a means of exchange. It is a system upon which decentralised applications can be constructed.

Tether USDT

With a market cap of $27.5 billion, Stablecoin Tether USDT is backed by the US dollar and launched in 2014. Each Tether token is expected to be worth $1 in this system. The CoinMarketCap ranks USDT to number 3. Moreover, Tether’s developers set out to create a digital currency with lower volatility.

Ripple (XRP)

Ripple Labs developed a crypto known as XRP (XRP). Ripple Labs is a fintech firm that develops innovative payment systems. To facilitate international transactions, XRP was launched in 2012. The coin has a market cap of $27.5 billion.

Binance Coin (BNB)

Launched in 2017, the Binance exchange’s native coin, Binance coin (BNB), has made its way to the top ten cryptocurrencies. Binance is the most favoured digital currency trading platform. You can pay your trading fees in Binance Coin (BNB) and participate in Binance Launchpad, a platform for introducing new digital currencies.

Having a market cap of $33.1 billion, the Binance Coin (BNB) is a BEP-20 asset that operates on the Binance Smart Chain. Decentralised applications (dapps) can be launched on the Binance Smart Chain because it is an Ethereum Virtual Machine (EVM) – compatible blockchain. On several exchanges, Binance Coin can be used to purchase stocks, ETFs, and other assets.

U.S. Dollar Coin (USDC)

USDC is a dollar-backed stable coin. Each USDC token is expected to be worth $1 under this system. Compared to other top cryptocurrencies, USDC is intended to be more stable. With a live market cap of $25.9 billion as of today, it originated in 2018.

Circle, a fintech firm, issues USDC and explains how it works. Its value is guaranteed by a pool of US dollars. You can use USDC to make purchases, send money abroad, or even put money into other decentralised finance (DeFi) projects.

Dogecoin (DOGE)

Dogecoin is a meme coin that emerged in 2013. It takes inspiration from the Doge meme, which has a Shiba Inu as its main character. Dogecoin is created to be a fun and meme-worthy cryptocurrency that still has attracted a sizable user base.

The meme coin has a market cap of $8.9 billion and operates on the scrypt algorithm. 

Cardano (ADA)

The Cardano currency (ADA) was launched in 2017. The coin has a market cap of $9.4 billion and is currently ranked number 7 on CoinMarketCap. Its proof-of-stake mechanism uses far fewer resources than Bitcoin and Ethereum’s proof-of-work consensus process. Cardano is an advanced digital currency that can easily scale and last for a long time.

Solana (SOL)

Solana uses an innovative technology stack to achieve its high throughput and low latency. Solana has broken into the list of top ten cryptocurrencies with a current market cap of $8.6 billion. To provide a high-performance blockchain platform for decentralised application, the coin was officially launched in 2020.

It uses a proof-of-stake consensus mechanism called Proof of History (PoH), which allows it to process transactions much faster than other blockchains.

TRON (TRX)

Tron, released in 2017, is an operating system built on blockchain technology. It relies on a consensus process known as Delegated Proof of Stake (DPoS) that is based on the proof-of-stake model. Token holders vote for validators to verify transactions and gain incentives in DPoS.

With a live market cap of $6.7 billion, Tron ranks among the Top ten cryptocurrencies. Furthermore, it aims to facilitate faster and more secure value transfers online by decentralising the internet.

Are Cryptocurrencies Safe?

There are a number of warning signs that indicate digital currencies may not be a sound investment. While this is happening, other indicators show that digital currencies are here to stay.

The security of digital currency is a difficult problem with no easy fix. On the one hand, the blockchain technology that digital currencies are built upon is quite secure. Since blockchain is a decentralised shared ledger updated by a network of computers, this makes perfect sense. This makes it exceptionally challenging to compromise or fake digital money.

However, there are many potential dangers while dealing with top cryptos. They include;

Volatility: Crypto prices are highly sensitive to market conditions and can experience huge swings in a short amount of time. Consequently, they pose a high degree of danger to investors who aren’t well-versed in the market.

Hacks: Numerous high-profile breaches of crypto exchanges and wallets have led to the loss of crypto equivalent to tens of millions of dollars.

Many crypto-related scams and ponzi schemes have been uncovered. These aren’t always easy to recognize, especially for novice investors.

Uncertainty in the regulatory framework: Crypto regulation is still in its infancy. As a result, the value of crypto is at risk in the future if governments adopt more aggressive laws.

It’s wise to store crypto coins in a cold wallet to prevent theft and hacks. When creating an account with a crypto exchange or wallet provider, be sure to use a strong password and enable two-factor authentication.

Bottom Line

Cryptocurrencies are digital currencies that are encrypted to prevent counterfeiting and duplicate spending. The growing adoption rate indicates a maturing industry, even while other variables continue to influence the volatility of cryptos. Institutional and retail investors perceive crypto as a secure investment option and seek ways to get in on the ground floor.

Bitcoin, Ethereum, Tether, XRP, BNB, USDC, Doge, ADA, Sol, and Tron are among the list of top cryptocurrencies. Storing cryptocurrency in cold wallets and always using two-factor authentication when trading on a reputable crypto exchange are good strategies to guard against theft and hacking.

Frequently Asked Questions (FAQs)

The cryptocurrency system works on a technology known as blockchain. To record financial transactions, blockchain uses a distributed ledger that is kept on multiple computers.

According to CoinMarketCap, there are currently 22,932 distinct cryptocurrencies.

You can buy smart watches, gift cards, travel tickets and electronics. The list of goods and services that you can buy with cryptocurrencies is constantly growing.

Bitcoin, Ethereum, Solana and Cardano are some best cryptocurrencies to invest in.

You can buy cryptocurrencies by carrying out research to select the crypto of your choice and then buy it on any crypto exchange. You can decide to store your cryptos in a digital or cold wallet. 

You can buy cryptocurrencies through crypto exchanges, peer to peer networks, OTC platforms, and crypto ATMs.

Bitcoin, Etherum and Tether are the top cryptocurrencies.

There are many types of cryptocurrencies, including tokens, altcoins, stablecoins, meme coins, etc.

The regulations of cryptocurrencies vary from country to country. Some countries have taken a more hands-on approach, while others have a more laissez-faire approach.

Some cryptos are not mined, rather they are created by a central authority and are distributed to users through airdrops or other methods. Cryptocurrencies, such as XRP and Stellar, do not use mining at all.

You can make money with cryptocurrencies through the following ways: investing, staking, lending, mining and airdrops.

CoinKickoff reports that 2,383 crypto coins failed between 2013 and 2022. Coins that are more than 15 months old have a higher failure rate than newer ones.

Cryptocurrency gains value by simply demand and supply. If there is more demand for a cryptocurrency than there is supply, the price will rise. Besides, people will want to hold more cryptocurrency when it is useful, which will increase demand.

No, not all cryptocurrencies use the blockchain network. Some cryptocurrencies use alternative technologies, such as directed acyclic graphs (DAGs).

Solana, Cardano, Wall Street Meme coin, and Evilpepe are some examples of fast growing cryptocurrencies.

Some of the best crypto brokers are: Coinbase, Plus500, Kraken, Interactive brokers, Eightcap and eToro.

There are a number of popular websites where you can get the list of all cryptocurrencies including CoinMarketCap, Crypto.com, CryptoRank etc.

According to CoinMarketCap, there are currently 22,932 distinct cryptocurrencies, with a combined market capitalization of $1.1 trillion.

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